Car Leasing UK, Contract hire Car Tax
Company Car Tax
There are two ways to reduce your tax bill on a company car – choose one with a lower list price and / or one in a lower tax scale. Company cars are taxed on their list price (not transaction price),excluding road tax and registration fee. This is recorded on a form called P11D and includes optional equipment, so think hard before loading up your car with all those extras ! Adding Leather, Metallic paint and an ‘auto’ box onto your Mercedes E220 Classic for instance will cost you more than £800 in extra tax over 3 years.
As for the tax brackets, cars are graded into percentage bands on their official carbon dioxide (CO2) emissions and their fuel type; the lower the percentage banding, the lower the tax bill.
Useful Car Tax Links -
